Alternatives	State A (25%)	State B (25%)	State C (50%)
Project 1	5000	7500	9000
Project 2	10000	8500	5500

Examine the table of costs for company ABC above. Given this information, please answer the following questions.

• If ABC follows the Optimistic criteria for decision making and the probabilities listed were not known, which project would they choose and what value would they expect?
• If ABC follows the Pessimistic criteria for decision making and the probabilities listed were not known, which project would they choose and what value would they expect?
• What is the Expected Monetary Value for Project 1, given the probabilities listed for the three states of the world?
• What is the Expected Monetary Value for Project 2, given the probabilities listed for the three states of the world? (continued)
• Which project would ABC take if they used the EMV criteria?